Links in “Ability to Repay (ATR)/Qualified Mortgage (QM)”
- Agencies Seek Comment on QRM
Out for comment is a key definition of âqualified residential mortgageâ (QRM) and what exempt securitizations for QRMs from risk retention will be allowed. Impact could be significant on covered lending products. [8/28]
- FDIC to Discuss Plan B for Qualified Residential Mortgages
Banking and housing advocates argued the original 20% down payment standard to qualify as a QRM would mean higher costs for lower-income borrowers unable to afford such a big cash payment; FDIC's board to take up matter again next week. [8/23]
- Two-Year Transition Period for Balloon-Payment Qualified Mortgages
In its final rule, CFPB adopted a two-year transition period during which all small creditors can make balloon-payment QMs, even if they do not operate predominantly in rural or underserved areas; here are more details. [8/19]
- Passed Senate Committee Bill Calls for FHA to Adopt Rules Similar to CFPB’s Qualified Mortgage Rules
Passed by the Senate Banking Committee on Wednesday, the FHA Solvency Act of 2013 is designed to help stabilize the agency's beleaguered reverse mortgages program and strengthen its underwriting standards. [8/1]
- Put on those Reading Glasses: X & Z Amendments Released
CFPB tackles array of Regulation X and Z mortgage rule topics including tough DTI calculation issues on ability to repay (ATR) and prepayment on higher-priced mortgage loans (HPMLs). Exclusions on construction and bridge loans provided on ATR and prepayment penalties.[7/24]
- Community Bank Group Lends Support for Mortgage Financing Regulatory Relief Reforms
Testifying before House Financial Services Committee, community banker group ICBA calls for support of mortgage-lending regulatory-relief provisions to facilitate small bank participation in mortgage market, especially âqualified mortgageâ status for portfolio loans and repeal of the new credit risk retention requirement. [7/19]
- Breaking Down Ability to Pay Rules for Credit Cards
AffirmX's Jane Pannier breaks down Ability to Pay rule for credit cards; voluntary compliance was effective on May 3, 2013, compliance is mandatory by November 4, 2013. [7/11]
- Caveat Lender! CFPB Goes Final on ATR & Foreclosure Protection
CFPB 161-page Final Rule clarifies issues on Ability-to-Repay and Rights in Foreclosure aimed at "facilitating the mortgage industry's compliance." [7/11]
- State Banking Official Urges Flexibility in CFPB’s Ability to Repay Rule
Testifies that community bank lenders who retain the full risk of a borrowerâs default should be presumed to have determined a borrowerâs ability to repay. [6/24]
- Yet Another Final Rule Change to the Mortgage Ability-to-Pay Requirements
This rule provides an exemption to the ability-to-pay requirements for creditors that meet certain designations, loans made under specific programs, certain nonprofit creditor designations, and loans made in connection with certain Federal emergency economic stabilization programs; also adds some provisions to the definition of a qualified mortgage and modifies requirements regarding loan originator compensation in the points and fees calculation. [6/13]
